A range of Bermuda insurers reported results yesterday, with many reporting losses as a result of the September 11 World Trade Center attacks.

Mututal Risk Management reported an operating loss of $5.4 million for the third quarter, PartnerRe reported a $342.8 million loss for the quarter and PXRE reported a $35 million loss for the period.

Scottish Annuity and Life, which was not affected by the attacks, reported a $5.9 million profit.

Here are the results:

Mutual Risk Management yesterday reported an operating loss of $5.4 million for the third quarter, ending September 30, 2001 after writing off $17.5 million in bad debt.

MRM's net loss for the third quarter was reported, on its unaudited accounts, as more than $8 million.

The company, which has been struggling financially for several years now, also reported a 37 percent increase in operating expense for the quarter.

Of the losses posted, MRM said the results include a third quarter after-tax charge of $17.5 million or $0.28 per diluted common share from a decision to write off all reinsurance balances due from Reliance Group Holdings.

MRM's Pennsylvania-based subsidiary, Legion Insurance, was reinsured with Reliance. But, a report in the Philadelphia Enquirer quotes an AM Best analyst, Joyce Sharaf, as having said: "Nobody should be surprised when other companies take a charge for Reliance. That company's been in trouble for so long."

MRM has lost 80 percent of its stock market value since it peaked in 1999, due in part to its reinsurance troubles.

MRM's decision to write off the bad debt resulted from Reliance being placed in liquidation by the Pennsylvania Insurance Department in October 2001.

MRM also reported some loss from the exposure to the events of September 11 at $0.8 million after-tax, or $0.02 per diluted common share.

The company also released its nine month results with an operating income of $18.9 million or $0.45 per diluted share. And a net income of $13.5 million, compared to net income for the same period last year of just over $32 million.

The company's results are in marked comparison to last year's results with an operating income for the 2000 third quarter of $13.4 million or $0.32 per diluted share. And operating income for the first nine months of 2000 at $37.2 million or $0.89 per diluted share.

In a joint statement, MRM's Chief Executive Officer Robert A. Mulderig and President John Kessock put a positive spin on the company's fortune: "The property casualty insurance market is experiencing a dramatic improvement in pricing, which has positively affected new unit sales and fee income in our Corporate Risk Management segment. We expect this trend to continue and to dramatically increase demand for our Alternative Market services. Sales of new Corporate Risk Management accounts in the third quarter reached a record 22 as compared to three in the 2000 third quarter. We are also experiencing excellent growth in our Financial Services segment, where fees grew by 70 percent in the third quarter. We are also pleased with the progress made in the transition of our insurance operations to a specialty insurance company model under a team led by our new Chief Underwriting Officer, Doug Boyce."

Of business during the reported period, MRM said its gross premiums written, which include premium from the company's Insurance Operations and Corporate Risk Management segments, increased five percent to $1.2 billion for the first nine months of 2001, as compared to $1.1 billion in 2000.

Net premiums written increased 41 percent to $319.4 million for the nine months of 2001 from $227.1 million in 2000. Net premiums earned increased 27 percent to $91.3 million in the third quarter and 24 percent to $238.6 million in the first nine months of 2001.

The company reported loss ratios of 98.8 percent and 77.0 percent for the third quarter and nine months of 2001.

The company's operating expense increased $25.1 million - or 37 percent - for the quarter, compared to $18.4 million in the third quarter of last year, and increased 34 percent to $72.1 million for the nine months of 2001, compared to $54.0 million in the corresponding 2000 period.

The increase in operating expense is being attributed to growth in personnel and other expenses to service the company's existing businesses. And recent acquisitions also contributed an additional $4.5 million and $13.5 million for the quarter and nine months, respectively.

Total reinsurance recoverables increased by 11 percent from December 31, 2000 to $2.6 billion. As of September 30, 2001, the company was involved in three reinsurance disputes in arbitration involving approximately $49 million of unreimbursed paid losses and an estimated $36 million of unpaid reserves, as compared to $56 million and $83 million at December 31, 2000.

Looking to the fourth quarter, MRM reported that it has now completed the previously announced sale of its interest in Tremont Advisers Inc for cash proceeds of $25.7 million. This sale will result in a realised pre-tax gain of approximately $20.0 million, or approximately $0.32 per diluted share, to be recorded in the fourth quarter.

Meanwhile, MRM announced that it has entered into a three-year agreement to provide a full range of accounting and administrative services to AXIS Specialty Limited, a new Bermuda based insurance and reinsurance company formed in response to the capacity shortage in the insurance industry.

PartnerRe this week reported operating losses of $342.8 million, or $6.65 per share on a fully diluted basis.

The figures reported were for the third quarter, ending September 30, 2001 and net loss for the period, which was said to include net realised investment gains and losses, was reported as $338.5 million or $6.67 per share.

The losses are being largely attributed to the events of September 11, which reduced operating earnings by $7.41 per share.

And third quarter 2001 results were reduced by $400 million pre-tax ($382 million after-tax) as a result of the September 11 terrorist attacks in the United States.

Large events not related to the September 11 attacks, which include Typhoon Nari, a chemical explosion in Toulouse, France, a large surety loss and a refinery fire, resulted in incremental losses of $25 million for the quarter.

Results compared to operating earnings of $53.6 million or $1.06 per share for the third quarter of 2000.

Net income for third quarter 2000 was $50.9 million or $0.90 per share.

For the nine months ending September 30, 2001, operating losses to common shareholders were $239.7 million, or $4.65 per share on a fully diluted basis.

This compares to operating earnings of $164.5 million, or $3.26 per share, for the same period of 2000.

Net loss for the first nine months of 2001 was $189.4 million, or $3.96 per share, compared to a gain of $125.7 million or $2.19 per share for the corresponding period of 2000.

At September 30, 2001, total assets were $6.5 billion and shareholders' equity was $1.8 billion.

Book value per common share was $29.32 on a fully diluted basis.

After the quarter end, the company announced its intention to raise $350 million of new capital in the form of trust preferred and mandatory convertible preferred securities.

PartnerRe expects to use the net proceeds of the offerings for general corporate purposes and to support new business opportunities emerging as a result of recent events.

"This new capital will allow us to respond to the increased opportunities we anticipate in 2002," chief executive officer Patricke Thiele said.

Looking forward, Mr. Thiele said: "Our outlook for the next year is very positive.

"We have set as a target for 2002 operating earnings in excess of $5.50 per share, and a return on beginning book value in excess of 17 percent, barring unexpectedly large loss events.

"We expect premiums to grow by at least 30 percent.

"The events of September 11 reaffirmed a sober appreciation for the risks in our economy, and underscored the need for a strong reinsurance partner.

"The assumption of risk will remain the core product offered by PartnerRe, and demand for that product is growing dramatically.

"PartnerRe's technical expertise and leadership in important lines of coverage, global operations and financial strength will serve to enhance our competitive position at this critical time."

Separately, the Company announced that the Board of Directors declared a regular quarterly dividend of $0.28 per common share.

The dividend will be payable on November 30, 2001, to common shareholders of record on November 20, 2001, with the stock trading ex-dividend commencing November 16.

Bermuda reinsurer PXRE Group Ltd yesterday reported a $35.3 million loss from the September 11 terrorist attacks on the World Trade Center.

After the claims the company reported a net loss for the third quarter of 2001 of $33,846,000 or $2.94 per diluted share compared with net income of $3,383,000 or $0.29 per diluted share in the same period last year.

Revenues for the quarter also fell 39 percent to $29.1 million compared to $47,.9 million in the year-earlier period, reflecting reinstatement premiums and additional premiums payable by and to the company as a result of the September 11 events as well as the impact of exited business lines, the company said.

Gerald L. Radke, chairman, president and chief executive officer, said: "The tragic events of September 11 leave an indelible mark on our society. The tremendous loss of life and safety can never be replaced. Our thoughts are with all of those whose lives have been affected.

"In addition to our loss from this event, we also were affected by a $4.7 million loss related to the destruction of four Air Lanka planes.

"Clearly, these losses obscured the underlying growth of our company during the third quarter as revenue and net premiums earned increased 21 percent and 15 percent respectively from the year-earlier period, before the impact of the September 11 events."

He said these events, coupled with the abnormally high industry losses experienced in the first half of the year, were already resulting in significantly higher prices for reinsurance globally.

He added: "Like others in our industry, PXRE is taking action to position the company to take advantage of the most dramatic market hardening in recent history."

Bermuda-based insurer Scottish Annuity & Life Holdings, Ltd. yesterday was one of the few of the Island's insurers to report a healthy hike in earnings.

The company, which was only minimally impacted by events on September 11, reported net operating earnings increased 26 percent to $5.9 million, or $0.35 per diluted share for the quarter ended September 30, 2001 as compared to $4.6 million, or $0.29 per diluted share for the same period the year before.

The company said the results include the effects of increased claims resulting from the tragic events of September 11 of $630,000 or $416,000 net of tax.

Excluding the effects of September 11, the company's net operating earnings would have been $6.3 million, or $0.37 per diluted share.

"This quarter's financial report highlights our successful efforts to build the company's earnings power and franchise value,"said Michael C. French, Chairman and Chief Executive Officer of Scottish Annuity & Life. "These results continue to reflect the significant enhancements we have made to our business model and management team, as well as our continuing commitment to building value for all shareholders."

The company reported that net income for the quarter was $5.5 million, or $0.33 per diluted share as compared to $4.5 million, or $0.28 per diluted share for the prior year period, and $13.1 million, or $0.80 per diluted share for the nine months ended September 30, 2001 compared to $8.9 million, or $0.56 per diluted share for the prior year period.

Total revenue for the quarter increased to $33.5 million from $18.7 million for the prior year period, an increase of 79 percent.

The company said the increases were principally driven by the growth in reinsurance premiums earned by the company.

Total benefits and expenses increased to $27.1 million for the quarter from $14.2 million, an increase of 90 percent, and to $65.4 million from $35.8 million in the first nine months, an increase of 83 percent. The increase in total benefits and expenses was attributed to the significant increase in reinsurance business written by the company during the 2001 periods.